Kenya’s high-net-worth individuals (HNWIs) are increasingly shifting their investments from traditional residential and commercial property to alternative asset classes as they seek higher returns, improved liquidity and greater resilience amid changing economic conditions, according to the Wealth and Investment Trends 2026 report.
The report indicates that wealthy investors are gradually reducing allocations to primary and secondary homes in favour of more liquid investments such as Real Estate Investment Trusts (REITs), financial instruments, data centres, farmland, logistics and hospitality.
Knight Frank Kenya Chief executive Officer Mark Dunford speaking during the launch of the knight Frank wealth and investment trends 2026 report in Nairobi said that the allocation of wealth towards primary and secondary homes continued to decline in 2026, reflecting a sustained shift in investor preferences towards more liquid and higher-yielding asset classes.
Dunford said that despite the shift, residential property remains an important store of wealth.
According to the survey, 44 per cent of wealth managers said their clients typically own three homes, while 39 per cent reported that their clients own two homes. Only 17 per cent indicated that their clients generally own a single home.
The report also found that home-buying activity remains subdued, with fewer than 10 per cent of affluent clients purchasing a home in 2025. A similar trend is expected in 2026.
“Residential acquisition continues to be influenced by several structural and economic factors,” said Dunford, citing limited mortgage accessibility, high interest rates, inflationary pressures, rising living costs and a long-standing preference for land acquisition before home construction as key factors affecting the market.
While residential investment has slowed, confidence in Kenya’s property market remains strong. According to the report, most wealthy investors continue to favour domestic real estate over overseas property because of easier management, familiarity with the local market and confidence in the country’s long-term economic prospects.
“The preference for domestic real estate investment among Kenya’s HNWIs remains strong in 2026,” Dunford noted.
Commercial property has also witnessed subdued investor interest. More than half of the respondents said fewer than 10 per cent of their clients invested in commercial real estate in 2025, with a similar outlook expected this year.
The report attributes the cautious approach to an oversupply of Grade A office space, changing workplace trends driven by hybrid working arrangements and high construction and financing costs.
However, investors continue to identify opportunities in industrial and logistics developments linked to e-commerce, warehousing and supply-chain infrastructure.
Looking ahead, the report identifies farmland as the most attractive investment opportunity for 2026, attracting 29 per cent of investor preference. Data centres, the residential private rented sector, and hotels and leisure each accounted for 24 per cent, while logistics and industrial real estate attracted 18 per cent.
According to the report, growing digitalisation, increasing demand for artificial intelligence and cloud services, expansion of tourism, and rising demand for professionally managed rental housing are driving interest in these sectors.
Overall, the Wealth and Investment Trends 2026 report suggests that Kenya’s affluent investors are increasingly balancing wealth preservation with higher-growth opportunities by diversifying beyond traditional property investments while maintaining confidence in selected real estate segments that offer stable long-term returns.
By Molvin Laventa
